Attorney General Announces Additional Settlement w/Herbalife

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Published on July 15 2016 2:05 pm
Last Updated on July 15 2016 2:05 pm
Written by Greg Sapp

In conjunction with a nationwide Federal Trade Commission $200 million settlement with Herbalife, Illinois Attorney General Lisa Madigan has announced that Illinois Herbalife members will benefit from an additional $3 million settlement with the company to resolve numerous complaints about what Madigan termed the company's "false and misleading claims that lured people into a costly multi-level marketing scheme."

Under the Illinois agreement, Herbalife, which sells global nutrition and weight management products, must pay an additional $3 million in restitution to affected Illinois members who joined Herbalife from 2009 through the present. The FTC reached a separate $200 million settlement with Herbalife that will provide reimbursement to impacted members nationwide, including in Illinois.

Illinois Herbalife members who have not yet filed a complaint with Madigan's office will have 60 days to submit a complaint online or by contacting Madigan's Consumer Fraud Hotline in Springfield at 1-800-243-0618 or in Carbondale at 1-800-243--0607.

The FTC settlement requires Herbalife to change its business model to ensure all compensation is based on retail sales that are verified. It also prohibits Herbalife from making statements that indicate that participation in Herbalife is likely to result in a lavish lifestyle.